So Just What is Rent Guarantee Insurance?
There are several reasons that tenants stop paying their rent. Reasons to not be able to pay the rent include loss of job, cash flow issues, relationship problems, military deployment, and more. Landlords that are handling their properties alone are forced to deal with nonpayment on their own as they figure out how to juggle the expenses that come with owning the property until they are able to evict the tenant. Rent guarantee insurance is the best way for you to protect yourself and your investment should your tenant stop paying their rent. Rent guarantee insurance will provide you income for a certain period of time so that you can begin the eviction process and move in a paying tenant.
How Does it Work?
Steady rent guarantee insurance covers all types of residences including single-family and multi-family properties. Landlords choose the coverage that makes the most sense for their situations. Should the tenant cease payments, the landlord can file a claim and collect the amount of rent that was owed per the lease.
What Does it Cover?
Rent guarantee insurance will cover nonpayment of rent should your tenant fail to pay any rent that they agreed upon in their lease. This is not the same as landlord insurance which covers any damage to your property. However, there are some circumstances such as a landlord’s inability to keep up with their portion of the lease or a property that is not maintained and habitable.
Do You Qualify?
In most cases, to qualify for rent guarantee insurance coverage, the rental lease should…
- Be for a residential property that serves as the tenant’s primary residence.
- Be for at least 6 months.
- Have at least 6 months remaining in the lease when the policy is purchased.
- Have already began at the time of purchase or will begin within 30 days from the start date of the policy.
Why Do You Need it?
As an investor, you face a significant liability if your tenant(s) do not pay their rent. Real Property Management conducts tenant screening to ensure that you will have good tenants who pay their rent on time, however even the most thorough screening can’t promise that life won’t happen once the tenant moves in such as job loss, separation, medical emergencies, and more. If you are worried about falling behind on mortgage or tax payments, savings, or paying the bills you depend on your rental property to cover, purchasing rent guarantee insurance will protect you from a sudden loss of income ensuring that their failure to pay doesn’t become a huge liability for you and your family.
Having a property management company handling your rentals will help you to live a more enjoyable life. You’ll have less stress, more free time, and essentially more freedom.
Contact us (866-500-6200) for more information today!
About Real Property Management Midwest
We are local property management experts serving Cincinnati, Dayton, Columbus, & Louisville. We manage Single-Family Homes, Apartment Buildings, and Condos. With years of experience, Real Property Management is Cincinnati, Dayton, Columbus, Louisville and Northern Kentucky’s #1 Property Management and Leasing Company.